People generally get confused whether to buy a new car or a used car under the same budget. We have listed the pros and cons of a new car and a used car.
• Under the specific budget, one can buy a brand new car as compared to a well-maintained used car from a higher segment. The C and D segment sedan loses almost 40% of their value within the first year itself.
• When buying a pre-owned car, if the odometer reads somewhere around 40,000 km, it is considered as a good buy and reliable.
• Now many authorized dealerships have started offering certified pre-owned cars such as Mahindra First Choice. These pre-owned dealerships has vehicle that carry a premium on their price tags, checked thoroughly and repair the parts if needed to ensure a near-new car experience.
• If the car is just a year or two old, one can take an advantage of an extended warranty.
• One can also finance the used cars though financial institution but they may have restrictions on the model vintage.
• Used cars depreciate less as compared to a brand new car and thus, offer fewer tax write-offs.
• The best deals are usually offered on cars that are a generation or two old. However, there are still good deals offered for current generations models as well.
• The interest rates on used car loans are higher than on financing for a new one.
• Pre-owned cars may have been damaged by negligence that is repaired superficially. If one goes back to the car history, it is time consuming.
• It requires more time to find a suitable and good car according to one’s need.
• The maintenance of a used car cost more as compared to a new car.